Forest Bioenergy. Port Alberni Bio-Energy & Forest Carbon Discussion Forum July 9, /8/2009 1

Transcription

1 Forest Bioenergy Port Alberni Bio-Energy & Forest Carbon Discussion Forum July 9, /8/2009 1

2 Questions from one of today s participants How many jobs are there in a 100,000 mw plant? How labour intensive is the bio-energy industry? Port Alberni lost 2000 jobs before the recession started, when will a bioenergy plant be able to replace them by? The Minister (and Deputy) is very bullish on bio-energy is he wrong? Why doesn t government start up a plant or two to get things rolling? Port Alberni would be a great location! How much fuel is available proximate to Port Alberni for bio-energy production today, and into the future? Are the new bio-energy tenure opportunities going to increase the demand and therefore the price for logs? The pulp industry has been applying bio-energy in their mills for years what is new about this? Who cut your hair?

3 Common questions and statements Why aren t we doing more? Europe s doing it! Why aren t we? If government wants this to happen, then make it so! What s the hold up? How much biomass? is there? What does it cost? Can you give me a tenure? Can I manage Crown forest land for energy crops? 7/8/2009 3

4 Common questions and statements (cont.) Using biomass for energy will not mitigate climate change! Don t log old growth! Don t build a plant near me! The only effective solution is to get rid of all the people! Government should pay me to do this! 7/8/2009 4

5 Its all about choice! Do you believe climate change is a real problem and we need to take action now? Are you willing to see the price of almost every consumer good increase to properly reflect the price of carbon? Do you support product life cycle pricing? 7/8/2009 5

6 Its all about markets Or: do you believe we should always seek the lowest short term cost opportunity and let traditional supply and demand economics guide our behaviour (irrespective of the mid to long term consequences)? 7/8/2009 6

7 Cellulosic Transportation Fuels 7/8/ /

8 So why aren t we following Europe s example? Europe gets their oil and natural gas from Russia and the Middle East. European s live relatively low carbon lives because in part, they have to. Canada has relatively cheap, abundant and secure energy and we treat it that way. But that s about to change. 7/8/2009 8

9 Fossil price trends 7/8/2009 9

10 US Energy Policy 36 billion gal by billion gal from cellulose The US does not produce enough cellulose to meet their domestic production targets 7/8/

11 How would you gauge the local appetite for transitioning to a low carbon economy? 7/8/

12 So what is going on? 7/8/

13 Bioenergy Already Big in BC Canadian Bioenergy Production Alb., 6% Sask., 7% All Other, 1% N.S., 2% Que., 3% N.B., 5% Ontario, 27% BC, 49% Nyboer et al /8/

14 Biomass Markets Existing Bioenergy Projects 7/8/

15 BC Wood Pellet Plants Houston Pellets-Houston Production Capacity 1,200,000 Actual Production for ,000 Premium Pellet-Vanderhoof Pacific BioEnergy-Prince George Pinnacle Pellet- Strathnaver Pinnacle Pellet- Quesnel Pinnacle Pellet-Williams Lake Exports Europe 650,000 Asia 75,000 USA 210,000 Armstrong Pellet-Armstrong WestWood Fibre-Westbank Princeton CoGen-Princeton 7/8/ Economics & Trade Branch June 1,

16 7/8/

17 Bioproducts 7/8/

18 Competition for wood fibre >2.7 million M3/yr consumed & growing 28 Million M3/yr consumed CHP (?) Million M3/yr 7/8/ ? Biofuels and Bio-chemicals

19 Electricity 7/8/ Source: BC Hydro Service Plan

20 Acronyms and equivalents Electrical Energy 1 Gigawatt Hour = 1,000 Megawatt Hours = 1 Million Kilowatt Hours Ave home uses 1 MWh per year (1.7 if heated with electricity) 1 MW plant generates 8 GWhs/yr 1 MWh requires approx 1 bone dry tonne of wood 1 BDT = approx 2.4 m 3 7/8/

21 BC Government Strategies Climate Action Plan BC Energy Plan BC Bioenergy Strategy: Increase use of wasted wood BC Hydro Calls Biomass Inventory 7/8/

22 Progress to Date Policy Development Forest Legislation & Policy: Partitions Fibre tenure Cut-control Access to roadside waste Waste Penalties Innovative TSLs Fixed rate for non-merch GHG Reduction Acts (5) First Nations Role BC Hydro Calls BC Bioenergy Network Waxman Bill (US) 7/8/

23 BC Hydro Calls Clean Energy call Standing Offer Non-integrated Community Program Bioenergy Call Phase 1 and 2 7/8/

24 Economics 101 What will motivate customers to buy from you? Better price Better product Better for the environment, the community, the family (Mom or dad work there) Great marketing Social Pressure No alternatives 7/8/

25 One last poke. Its about social choice Economic fundamentals must not be ignored Beware of the snake oil salesman Drive change locally Integration is the key 7/8/

26 Thank you Don Gosnell R.P.F. Manager, Bioenergy Initiatives, Ministry of Forest and Range bc.ca 7/8/